Agriculture is highly dependent on the climate and is thus very vulnerable to climate change. However, the nature of total climate change effect is broader than just alterations in production and costs (vulnerability); it also extends to adaptation actions undertaken in response to the changed climate and mitigation actions undertaken to reduce drivers of further climate change. Hence, areas for economic research on climate change issue involves looking at three issues: (1) vulnerability, (2) adaption, and (3) mitigation. Research in and across these areas is important for understanding the future of agricultural production and markets along with formulating investments or policy initiatives to maintain/increase availability of low-cost commodities. In this chapter, we address these three aspects of the climate change issue in an agricultural economy context and the ways economists have approached these aspects. We do this by providing supporting literature reviews of climate change effects on agriculture, along with reviews of work on agricultural adaptation and mitigation actions. Agricultural economics work in these arenas is quite important in guiding investment patterns and policies along with understanding future market conditions.

JEL classification: Q54